iea20080512-20080515paris-sectoral approaches to international climate policy workshop 21rajivgarg-summary

1、IEA WorkshoponSectoral Approaches for International Climate PolicyParis14 and 15 May 2008Sesssion 4Rajiv GargEnergy EconomistBureau of Energy Efficiency, IndiaIssuesforIndia India is already promoting energy efficiency in energy- intensive industries, and the Energy Conservation Act, 2001, provides

2、a legal mandate for this Under the EC Act, nine sectorshave been notified as“designated consumers”, who are, inter alia, requiredto appoint certified energy managers, undergo specific energy audits, report energy consumption data, and comply with prescribed energy consumption norms. The BEE certifie

3、s energy managers (through a national exam), accredits energy auditors, and is setting up a web-based energy reporting system. Energy consumption norms have not been prescribed for any sector as yet.Practical Issues “Sectors” (e.g. steel, cement, paper) are everywhere characterized by great diversit

4、y in terms of: Scale Technology pathways Technology vintages Project boundaries Type and quality of inputs/resource endowment Product diversityDiversity withectors in India Large variationcale of production capacities Diversity in raw material usedLarge bandwidthpecific energyconsumption in cement s

5、ectorVariationspecific Energy ConsumptionPractical Issues Such diversity renders each plant in each country unique! Not feasible to define norms/standards unless there is significant homogeneity amongst plants in a sector Verification of attainment of sectoral standardswould be “the mother of all in

6、trusive actions”(pector Raj!) Alternatively, presuming that use of certain technologies would ensure attainment of prescribed standards would drive market to these (few) technologies with closely held IPRsConcerns regarding sectoral approaches Will limit technology choices to a few, protected by IPR

7、s held by developed country firms. They would then have cartel power to dictate royalty payments, sharply increasing cost Even otherwise, these technologies would not be optimized for resource endowments of developing countries and relative factor costs, leading to the sectors becoming uncompetitive

8、 in any case Represents a serious deviation from the Kyoto approach of reliance on cost-effectiveness through carbon market approaches fiats based approaches such as harmonization cannot lead to cost-effectiveness (a basic result in environmental economics literature)Feasible sectoral approaches Collaborative R&D supported by global venture capital fund, with concessional working of IPRs in developing countries Payment of royalties by GEF etc. for technologies needed by developing countries to implement their national action plans Norms on packag